Villas sales on the Thailand island of Phuket declined from the same period last year according to the latest research from CBRE Thailand, published yesterday.
The firm attributed the weak performance mainly to a decline in the performance of the entry-level (THB 5 million to THB 15 million) sector.
CBRE said it believes that the weak demand for entry-level and mid-range villa properties has been partially due to buyers shifting towards an investment mind-set looking for income, rather than a holiday home.
“We do not think that the shift in the buyer profile of resort properties is permanent, and when the global economy recovers and the global wealth level improves, more holiday home buyers will return to Phuket,” it reported.
There were four villa projects launched in Q4 2015. Two of these projects, Anantara and MontAzure, are luxury projects with average prices of more than THB 370 million.
Going forward CBRE said it believes the overall Phuket villa market will continue to be slow.
“We think that condominiums will be more active than villas, and we believe that there continues to be interest from high-end holiday home purchasers. However, developers need to ensure that they can give enough confidence to potential buyers in terms of product and ability to deliver.”
Read the full CBRE Phuket Q4 2015 Marketview report here.
